Document Type
Article
Publication Date
2023
Abstract
One of the most contentious aspects of using cost-benefit analysis in the regulatory processinvolves discounting the value of future harms . Based on updated data from U.S. Treasurynotes and Inflation-Protected Securities, the Biden Administration’s new Circular A-4guidance will replace the unreasonably high discount rates of 3% and 7% from the prior 2003guidance with a single lower rate of 1.7% when assessing a regulation’s effects from thepresent through 30 years into the future. This post will review why discounting is done incost-benefit analyses and explain how the new guidance will allow the government to betterevaluate the benefits of reducing pollution exposures.
Recommended Citation
Rothschild, Rachel. "Cost-Benefit Analysis and the Problem of Long-term Harms from Environmental Pollution." Yale Journal on Regulation (2023).
Comments
© 2023 Yale Journal on Regulation